More than $60 billion has been put into smart contracts through the blockchain’s decentralized oracle network.
Co-founder Sergey Nazarov of Chainlink talked to Bank of America investors about Chainlink’s next-generation blockchain technology and how it could be used in finance, insurance, supply chain, gaming, and gambling. Bank of America said this in a report after the call.
The top decentralized oracle network on the blockchain, called the DON, has seen a lot of use. Chainlink is likely to be the main reason why the total value locked (TVL) of decentralized finance (DeFi) rose to $203 billion as of Feb. 15, up 313 percent from the same time last year. Analysts led by Alkesh Shah wrote in a note on Wednesday.
There are many different types of financial activities that can be done on a blockchain without using traditional middlemen. DeFi is an umbrella term for these activities.
It was because “hybrid smart contracts, or self-executing and tamper-proof digital agreements, can access real-world data through oracle nodes like market prices, time of day, weather, and GPS location,” the report said. This allowed hybrid smart contracts to “verifiably and securely access real-world data.”
More than $60 billion had been put into smart contracts by Chainlink oracles as of Feb. 15, the bank said. This is up from $7 billion at the end of 2020.
The blockchain made more than 2.5 million “verifiably random” numbers for non-fungible token (NFT) distribution and gaming, up from almost zero at the end of 2020, it said. This is up from almost zero at the end of 2020.
NFTs are digital assets that can be sold or traded on a blockchain. They represent ownership of virtual or real items and can be sold or traded.
“Oracles also allow for the next generation of blockchain use cases, which need real-world data and could change established industries,” the bank’s analysts said.
Bank of America said that more than 1,100 projects use Chainlink’s network. Companies like the Associated Press, AccuWeather, Sportmonks, and 800 others have set up oracle nodes to make money from their data.
The value of LINK, the token on the blockchain, is $8.1 billion, the report said.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.